DGICA - Earnings call transcript Q2 2018

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Operator

Good morning. My name is Jessie, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Q2 2018 Earnings Conference Call for Donegal Group. All lines have been placed on mute to prevent any background noise. After the speakers remarks there will be a question-and-answer session. Chief you Miller, conference. begin Jeff Instructions] Financial may Officer, your [Operator

Jeff Miller

June afternoon, you and outlining for conference ended morning, much. our the XXXX. to quarter Thank Good Group quarterly welcome results. very news issued we a the Donegal second XX, release Yesterday call

For of minute, at quarter Donegal please discuss In a brief that visit will section recent and our details. Officer, Investor commentary our Relations eventful a provide our was you website an Burke, initiatives. copy Kevin the President quarter, quarterly and of at Executive on developments release, Chief the business I'll on donegalgroup.com. It update then overview financial and strategy provide a Group. of

you may prepared have. the our Following we questions will comments, open any line for

statements. started, forward-looking of that for in the aware could Please get and that to materially in more projected we forward certain Form information in conference be about number should report news refer our in from those on our to in release call you a the Further information risks made actual the looking involve this are and release news submitted results uncertainties. cause XX-K risk to and is statements nature differ available that statements we factors on SEC. forward-looking Before

link. can through Form our the filings XX-K the access SEC our website You Investors section under of

in the it we provided non-GAAP turn by Kevin. release of information Regulation reconciliation news We G a yesterday required that, to also afternoon. as issued over I'll With SEC

Kevin Burke

welcome, and Jeff, everyone. Thanks,

quarter led will back in To companies, voting Donegal insurance Donegal to before and states discussion Don into by the today insurance XX direct of company annual approximately and for direct September company recent of annual and Company on serving Donegal Mutual Donegal to of Boards call Inc. Group, company here consultant Donegal Donegal which the of from past Company years. highlighting XX continue billion on Insurance a and subsidiaries Chairman includes writing control President approximately the for Boards and development of Insurance Don of Directors Donegal at begin, mutual it's XX respective lead beyond. for Company the XXXX, a serving retire the of XX Insurance strategy the Group, Company premiums. and appropriate year and remainder think Donegal after following that Don serve to I Nikolaus in in majority took as and Nikolaus Mutual dive our the two the Mutual, of start and writing Mutual our the then Directors second his the the Group Donegal one-state will million as CEO will as we to X, premiums XXXX the announced of helm Insurance Donegal Group and retirement. Mutual Insurance serve Inc. X developments

part of ultimately into originally management Community of obtain the Second, sale investment because our not and Union favorable to this expect to the of the on of its the stockholders. earlier excellent of quarter of in move bank terms allow proceeds profitability and And operations. our beneficial acquirer from and and will focus services selected utilize for Northwest us cultural ultimately agreement our transaction between XXXX, the Financial XXXX our our would core of sale fit is operations growth environment Services that formed organizations as made our we Donegal, business. of and of operations. Bank was Community team core sale that, the that We our would finally, this the customers. casualty pricing year the for respective to the ensure all banking products business our Union believe close bank sale Donegal Services enhance Northwest Bancshares as on a decision focus transition the for investment because as Northwest be we'll Corporation insurance and and With we a we announced Financial to Bank. property with entered because of Donegal banking entirely our our We We Corporation seamless insurance strategy. the of an to strategic We in to discussion first let's the in on pursue goals of this we currently to support insurance allow to

made of our do, activity challenging was encountered larger-than-normal more significant that our average, towards experienced above and enhancing fire of we quarter a We operations. our While reserve we in to first goal have which development of quarter underwriting commercial incident progress second the year during levels work well profitability a within and prior historical our weather-loss we automobile personal segments. losses very

handful core underlying a our losses workers' within quarter, masked of During second results. the compensation improvements losses and weather-related

example, have this see and higher challenge, we aggressive began has taking are ultimate steps quarter, these been place trends. to trends in of to in escalating losses, lines exhaustive of Without the address through profitability of particularly to signs severity within going delay automobile in we For reporting. our reiteration Recognizing are an we claims the restore traction. an what of first terms initiatives show in stated put beginning we to that industry-wide

the the cost plaintiffs As vary we greater that have from per settlement allows a driving, said us preponderance in of to claims delay project higher repair to ultimately distracted information the to counsels reporting cost. vehicle causes past, ultimate

and each examining very working claims no settle and fairly be to that efficiently. continue against We valid to in have merit claims claim, defending thorough

model rate for We we all will are auto, increases in in writing predictive In our states have a using have in which underwriting continue personal the implement and implemented process to years. automobile actively been business. we

on guidelines additional new taking our longer underpriced actions of business number We growth have are a and have we that business. tightened implemented no that so underwriting slowed

similar as to accept analytics, discipline is rate Our taking combination the underwriting as of well rate growth the rate adequacy. steps. lower restore auto, we review order to very approach a predictive in having commercial are traditional In refinement,

re-underwriting the all in underperforming from taking pricing commercial Georgia, these last are which on and perspective. extensively including we process renewals in renewal in definitive a highlighted state underwriting challenging states, profit based actions We the scoring states. several We're quarter policy as automobile each of of

business to automobile commercial actions. using And score usage, other in model are our CPP for We tier Predictive utilizing for increases also and underwriter predictive new determine the in underwriters appropriate model all production now commercial BOP, new review. to and underwriting business scores are pricing our models renewals policy. are contractor

addressing us through various underwriting these rate gains. actions. to premium retention and achieve problem net written relatively market head-on pricing seen have actions, And stay we are conditions point, While steady allowed to the we have our despite stable this

more let We net some that, Jeff discussion. turn expect time, some reflect premium our premiums over With through longer-term aspects over earned call improvement the throughout go as of rates pricing comments higher marketing of automobile out then other me to enhanced strategy to incremental financial yield the implementation with the and our our all the risks I'll profit and regions. for close technological of results, advancements appropriate to of

Jeff Miller

growth financial Beginning personal a The compared to premiums of second our the increases through growth In $XXX.X with go and we lines, for virtually X.X% combination in policy and prior includes quarter. X.X% premium commercial to growth modest of and increase in lines. the higher second commercial commercial auto. increased renewal no average in premium on net the lines with year additional written XXXX, results premiums, briefly new million I'll Kevin. provide Thanks, some details. quarter saw increases renewal

the XXXX. modification lines effective umbrella net to increase to reinsurance addition, other In X, premiums liability reflects written coverage in commercial third-party March related that was policies the

result and implemented policy underwriting to increased compared of for offset higher $XXX.X second risks, the now quarter increases for which premiums the growth. lines, of and premiums our to Net historically rate of second impact amount a retaining have very liability a profitable. by XXXX XXXX. higher net losses the X.X% of the as In rates slow are million new attrition measures quarter We been was personal earned of umbrella we've

We to a as year impact expect versus exposure proportionately rate growth reflect our higher increases premium growth the of progresses.

losses. to Moving

lower the the loss X.X second the quarter quarter quarter losses quarter homeowners losses to of points quarter points to Fire severity impact X.X had or compared for were loss percentage for modest XXXX the contributed million loss was excess both ratio the was XXXX, percentage the $X.X of the unusual losses loss to for percentage ratio decrease loss second or Development year for of compensation and second The quarter of That the points quarter to was for or percentage same points the years of handful the in impact for were on prior to the $XX,XXX compared the $X.X $X.X second the million due in percentage XXXX. million to percentage incurred points losses the loss $XX,XXX for ratio of second to losses to second at for in excess quarter. no percentage X.X loss noted modestly XXXX. quarter commercial prior compared large X.X fire in a points losses. or year ratio ratio of XX.X%. in ratio. in virtually losses prior X.X ratio. the than XXXX. increase loss quarter to the $X.X Weather-related XXXX, million the second second the XXXX reserves in the accident XXXX, a second the period points We as Our Workers' ratio XX.X X.X fire XXXX of amount of

on trends to quarter of amounts. expectations in a were saw the both reported impact and continuation call no XXXX we lower reserve further that period the While the our We quarter the of the pleased prior strengthening claims, resulted related previously actuarial personal reserves half for first discussed consistent significantly was on with in quarter required we first largely information than and XXXX analysis delay receipt actions. first review first our of in auto the commercial the were that

Our in $X.X business, some personal auto. individual in actuaries adverse reserves lines did resulted around of between shift development million of prior period which

that of the $XXX,XXX more development to quarter. development in for favorable in However, development amounts netting commercial by out was favorable about modest offset other than business lines our

quarter partially our year second charge restructuring the second quarter. costs XX.X% costs for a quarter, improved the expense decrease the attribute to quarter consolidation ratio offset XXXX, of Our reduction We underwriting-based of office. termination the prior $X.X in Insurance operations into compared prior by Peninsula for to compared a the incentive year XXXX, in million company subsidiary the the XXXX XX.X% second slightly for to for home second to the employee the quarter with associated

Peninsula ratio. the consolidation. to we $X.X quarter total, percentage approximately The the we to achieve XXX.X% earlier, million XXX.X% to our restructuring of charge As as second In modestly announced implementing current improved added savings period from quarter. expense combined result a ratio our X.X year expect annualized combined point in prior of

Our XXXX. XXXX and we've fell of profitability improved we target, underwriting taken half performance all second in of short actions of the in will result the our believe but into

Moving to assets in relative year to $X.X quarter $X.X reflected to increased the primarily quarter investments. XXXX. for realized in Net $X.X income second Net in investment second The an the the to investment prior the XXXX. were million quarter. for invested million income increase gains second compared net XXXX, investment million XX.X% second increase quarter average

market end As with our gains. equity to market guidance mark we flowing the accounting a new XXXX, realized in quarter at requires value for securities through change net investment that each value reminder,

with Our exceed XX% high-quality invested approximately $X billion total maturity in securities. invested fixed assets

the We or compared we reported quarter securities. staying per the a course primarily mortgage-backed loss within restructuring net investments for of million Class are second investment of Class In A of charge A $X.XX share new of of $X.X the That mentioned net XXXX. with loss per to an strategy share XXX,XXX million earlier. categories the which quarter the or second in $X.X included corporate summary, terms for XXXX, bonds I a and after-tax money $X.XX

reflecting year-end XXXX, Our in was rates. XXXX, book due at and the XX, decrease to per to increase the an first bond unrealized at portfolio the with interest half share net compared available-for-sale loss for June value $XX.XX our in $XX.XX losses market

quarterly of me on let to declared August dividends share remarks. $XX.XX that, Class per With Class shareholders Kevin A X. share Directors and back to per for it of payable Board B Our of closing record turn XX cash August $XX.X

Kevin Burke

team favorable XXXX. management improve particularly, our progress Thanks, Jeff. considerable our to believe some We XXXX performance, on that initiatives has underwriting results the we and in remainder expect made for of key and, more

investments our a to stockholders. of technology our conservative in underwriting maintaining discipline, investment pricing deliver include and to values core Our culture conservative and continuing value maintaining approach all a

long-term on core is Our team entire management philosophy. strategy to adheres this that focused

strong business mix on We relationships. diversification are products take our of of optimizing advantage of focused our to our agency and both

commercial see year each achieve to a will Presidents of proportion are favorable we premium this objective, and they commercial continue of for We shift opportunities to towards Presidents that aiming a segment, growth our a action subsidiary achieve in steps three the market business. have Vice target prepared take and regional includes to our higher projections market, and business. plan the To

be will plans the formulate throughout we of as remainder business refining strategic further We year. those plans the and our

modernization. we our aspects Another enhancement in predictive initiative utilize continued to capabilities of ongoing the part systems of We all what modeling of as is we enhance further technology do. intend our

to effort systems, legacy systems. replace approaches, has Our expended comprehensive evaluate months develop IT remaining management to alternative plan a several over to the and past vendors our team significant

working are the our develop a that will to consultants into comprehensive with needs for systems We blueprint IT future. meet

any focused are that time, over on lines operator open ask profitability have. book the value underwriting for may the you questions to while We and we'll our With for future. appreciation the that, company preparing

Operator

comes Your Instructions] Campbell [Operator question KBW. from Christopher with first

is open. line Your

Christopher Campbell

guess, growth, in seen first net is question lines' while. just we've premium a my on slowest is the personal of kind I year-over-year since which

take reducing if So about how premium the slows? premium out should content, this growth personal line of the presumably loss are just thinking you more but expenses

Jeff Miller

are of lower. going are to are obviously and really what those expenses as what terms we in very premiums question doing modestly Well, we expenses be operations closely. reduce the monitoring The is would we

use business slow growth, We at we things to coding that we do are as the have because the processes we reports underwriting automated looking such and the in expect as the new processes incentives of We've which result we ordering to expenses reports. were a also in that types of the coding related the our should agents. of lower level to lower activity, paying those reduced

point business a place result loss implemented at personal in production will this incentives do component not lines new for For have our of any are to that reduction We've a we lines, personal total. incentives ratio that in in agency in related costs.

believe, structure. we raise wherever that Salisbury a also a Peninsula the to effect consolidation reduce that the the you overall operations we the on valid that an for So will was of an operations, have, for continuing efficiencies we our But very in home into analyze are cost way the looking overall expenses will we of regional point can, entity. office example

doing, types continue those So are we but the those reduce of to for things that we opportunities are look costs. to

Kevin Burke

a relates that to that Chris, that cost efficient. particularly also to lines. been think there now have have We home the centralized by are in being office. underwriters, as that lower but as gained, expense from we underwriters it fact Peninsula, standpoint, relates two recognize think obviously, efficiencies going had it's to basically it's load, we that it personal six very done the we're to here been work that is that as some is, We

Christopher Campbell

it. Got

and, and you you towards Kevin, how part thinking commercial kind of target second so like XX-XX I historically I mentioned pivoting to of was has you're about think would a tried had that script ratio. more know your be, the And Donegal lines,

some personal of So guess, able And that terms the could line look commercial on what and be versus them to, the that going you you've of side? transfer kind commercial in of are you lines? made would how personal I target forward, investments for repurpose the thinking side

Kevin Burke

total is do goal, like to sort XX% it's really achieve split, In commercial. book is an of of Chris, where business somewhat aircraft that, XX-XX of carrier. turning to our Our a order

it dramatically. do can't You

months. XX can't it You do within

disruption or agency severe your within base. can't create You

we plan is at a split. very years, so put be do methodical to we'd way X in that to we want And what the together X.X that a over next XX-XX to like

that We we the to personal commercial lines have solid back with. that if very will. our underwriters repurposing you know There process, actually office of some augment some started areas a are perhaps in good we need

shift X and a we And line side into the of commercial X, Donegal strength, as a growth have the problem bringing over that, build that for ago to And we we group years, that commercial see sort need skilled future. as that recognized underwriters support that last them for active line the of trainee in take the house opportunity be not continue year bench to been so every and the very do and an we had we in to very some years initiative. side taken would

demographic So that that good we staff. underwriting is sort results have yielding commercial changed of our some of lines very as

a very now. have strong bench We

are that commercial we that resources continues the trainees on the that could learning side of are and book as place grow. additional over have have personal to business in do transfer lines We that business, lines always

Christopher Campbell

Donegal know Mountain guys association done that publicly had I not traded so with have And the Mutual, you done, States. group, like an

be mean, So how with looking and that into that shift much factor split? much bank the possibly years as could be enters that that sale. accelerate line that that the looking maybe at also the would for? opportunities, pool in of proceeds commercial you upcoming How personal presumably? that a you would you're And could the I that, way would factor the into inorganic

Jeff Miller

transition, talking the the Mountain the New going commercial we Mexico, be XXX% that States the as because Colorado operations well. States X business, lines. overall is plan recall expect of that's is commercial very will Mountain part Utah, commercial states the just we're business that affiliation, mix mix, That of about, in Texas, our the to you and Southwestern while Certainly, of portion increase of

fourth states, complete. nearly of call months. X. that And as here X X be all in Donegalization, online The within like is operation of the the Our few it, systems we to are or in will next place the

through We X-year are now the mark.

the flow of And that so complete, essentially business nice we of that into entity. seeing of a new and re-underwriting is book coming business are

affiliation Donegal premiums include Mutual Atlantic said, which stream Mutual into of in Donegal Group that or bring that it's entity, of Group the would Donegal participate some currently between that at As that but XX% a intention States, and revenue. business Inc.'s you point, the our to, it's the pool Donegal underwriting then does not profits in revenue

encouraged that, year expect timing definitely do see the to of coming we in that commercial we plan the into within the but next are lead months. shift So to We're of mix progress evaluate the XX to and continuing would business that the to lines. by towards

that we As furtherment at to there the commercial proceeds, support growth level operations where sure lines will insurance strong bank to support the growth investing there the make will that in that be of invested a statutory expect shore growth two next three proceeds to some subsidiaries, of is years. from and surplus our be to adequate up the the the premium especially those we over to been has the to surplus

Christopher Campbell

that to the Got down of of And would pay be be, it. of would those existing any used any of any credit? line proceeds

Jeff Miller

certainly would we likely, utilize our lessen those interest than to proceeds under Yes, That's more consideration. expense.

Christopher Campbell

Got comp. it. may, three think just know, quarters kind if premium one, last workers' on year-over-year I And a I then you of last had I one decline. the just

severity, in losses. you attritional book in? and exposure, seeing [indiscernible] But what like, severe you of in a of you quarter growth seeing just know So had this noise seeing with are what the book? are coming where amount unusually in frequency, bit of, terms are your large exposures those high I little that

Kevin Burke

really down Let's from perspective, a take your part growth comes to first question competition. Chris. of simply It the

We are there monoline being aggressive. and very, writers workers' refining lot their rates very comp a of out that have really

they to level. ratio us. years. for the chase that have as business. loss We comp they all underpriced as the profitability very we for last carriers for profitable been with And piece generally know, are workers' four comp, going are are three simply for the industry in have chasing It's profitable been And worker's commercial very, not auto, or the dealing issues

the in to having are growth really it reduction hold sort in competitive count know And in we we that and sure lower and accounts not all for we So where rates and comes nature gets best rating. policy down of simply think to that overall line you. interest comp, our it we that the just it's in because make some workers' of the necessarily chase

profitability and right possible competitive really So continue everything where of to levels to that's we the accounts anyone's retain now. very, actively agents going out the do workers’ long rates business, unfortunately, the to getting are industry How is the comp. it but continues with working erode bottoms or to are guess, very the but the

Jeff Miller

this Chris, Jeff. is

there's generally, in two around, what so current had of they you just quarter. comments injury Just those have and of some, you several would one for or Kevin's we losses see quarter. call losses. some of to follow of could the look in two last us just in did hit characterize or what quarter. we've a up over is the current our circumstances four years, handful and claims address actually those year what the that we to losses on as underwrite larger question were shock but surrounding your about at that one loss a that We each it's But Unusual we catastrophic experience the necessarily the typical seen. When nothing kind current

look an workers' ratio we comp. that's combined had our results XX.X% You six at for ratio, combined months, first in the

other still the it's those in really trends, well. very that of performing change. is frequency, far is handful unusual But claims, So losses. than underlying extremely quarter severity the reflects current there as Everything stable. XX.X% no as

Christopher Campbell

that type And or these you up, quarter, the and economy are, these, and to this due claims like of had not that's employees it's anything? like new trend picking four or Got not catastrophic the it. that

Jeff Miller

all. veteran was you see. would auto would The company. was the long-term an a were that X injuries at accident. of what mean, other employee X There typically not I employee No, be

very just to were really from accidents unfortunate, can't I time. economic So it but those time necessarily. tie kind to freak employment are occur of that or They conditions

Operator

from and Farnam Instructions] with [Operator Bob comes next Scattergood. question Boenning The

Bob Farnam

a questions have versus trends. few on pricing loss I cost So

your, cost just by your know that I'm going assume I so to And to is impression, pricing exceeding trends. want in loss how much.

Jeff Miller

the in that for Jeff, able is would what I business, to indications. majority of where the we again. in states regulators and the exceptions they file more I from actual rate increases of say are said, that our level where competitors are increases are product-by-product believe to rate really rate This that. state-by-state, states, the business, And cycle, getting that the Sure. on we're done. the many actuaries for our I have are states are be close our the are driving our exceed indications with increase increases. where the experience to the the a of we taking have that believe rates do line those or every be. not as we're to and case be playing highest on states the in we highest we filed concentrations within But we That's that be viewing where the indications. in our with states generally of are getting have approved X we rate indications terms several have based there, we saying the what is catch-up still we And We state. should But we larger can should to mean, that need get in

on direct a increase, growth rate quarter of be a basis. of this you Just is helpful. to in current might give our the premium personal In the sense lines, component

our written lines, than business exceeded auto, written increase, was the increase, But net was increase in in very that that and premiums new attrition X.X% premium again, rate increase. and rate in offset rate by increase included is close commercial X.X%. X.X% to increase writings. was a rate X.X% or the commercial it higher which Our And

had next where much and, the eventually the find of we've in rate to six into that profitability, its premiums the months. course, way our a will higher net increase some seeing earned nine are So difficulty premiums written in in lines we impact over

Bob Farnam

right. All

the the up X.X%. So lines that's that case? personal auto, I'm rates is mostly assuming

Jeff Miller

lines close very are very homeowners, auto It's to both and number. split between that close,

Bob Farnam

Okay.

note did development you in personal So some adverse auto.

a booked ratio there. You combined XXX

if in afterwards, you auto would I out have idea been your do have do personal development So but math can suppose actual, I your the what an take that combined ratio ratio? combined just we

Jeff Miller

I'm didn't either, the but sorry, $X.X run about it's million. I math

[indiscernible]. So that's of if $XX.X that over, you premium, million take

Bob Farnam

And the ratio combined commercial auto XXX. was

Now was anything using about in the there. Is accident scenes? number some you didn't development was good behind that be there should really there kind development or year that say a of there XXX we

Jeff Miller

actually is that in about There favorable by development line million. $X

current still the quite activity, about, reflects talking accident view year trends and actuaries years. we've accident the of So that more a from much is also future high in ratio some but continuation current conservative loss loss large been only the not our on development

year ratio a We reporting have, much a say, ago. would loss are higher accident we year than let's

Bob Farnam

start getting rates through. to the a for while there you with some those going rates And be auto really flowing X.X%, up severity XXX is going until trend in as well. elevated That

So kind probably that to range? be year there more profitable of than probably, a one more come could for into another down

Jeff Miller

We're at earliest. Right. middle the XXXX part of until expecting not significant improvement

Bob Farnam

or stand-alone How commercial, versus much of I the auto book is personal packaged? guess, either is

Kevin Burke

of There a is lot stand-alone. that's not it

at place it, initiative around in those really to is of lines, place on Most the fact, side XXXX accounts. the been package really put was there write any not is put beginning prior that monoline. auto commercial And package. for years incentives we in personal incentive of in and In have Bob,

monoline make worked So it. that, very, we away any auto, stayed we've very lines, sure that personal deemphasized or hard that from commercial to

Jeff Miller

looking only, would write to The profitability auto be really continue levels we're hard evaluating states up we a on where that pulled we follow the and several and homeowners and to only just exception Yes, currently market states number those out of that. to of at there. the ago years

Bob Farnam

All right.

question is, have last I analytics. implementing And that you're predictive so Okay.

done do like auto impact you're getting plan on the, roll on the getting other you you when into you of Sounds having ratio? lines, you're expect products those what lines, did type or loss you've out into your

Kevin Burke

of Bob, that The for been It's it. the this and couple confidence of how model. of lot it years. now really we've model the underwriters first thing, gained that results out We're a we apply is in how use and seeing

And so confidence there. is there

start with to of some so out we roll areas. And in it that, other the

one I the One key the, that as fact a the that technology those initially proceeds the of result sorts some forward of of and call be of our sale we is is its the initiatives. of into extent, items of on bank to fullest mentioned in the will deploying capital really the the initiatives utilizing going

to We that out. will roll continue

it with book refine recently passenger model business. to as have of augmented that further We auto some that mileage component just the private well, helps

think it is that what it really see in of different models over several particular, book, as will in that you define business, a auto model in with, here the addition you I and in be from we a that better we because lines the helps now, will think, us should A so next And these I position would see private we implement rates. in quarters, have to year full of sitting been much book. the passenger applying year

So we're would to optimistic it. that, further on We've it looking it and XXXX key for the expand we're yield. results about our really to forward objectives got that

Jeff Miller

a granular, following little a Bob, the just up Yes, quite be the are more on higher, in loss higher bit deciles. that. ratios To

in higher scoring, model X the at those look and much deciles scored the business that you an X, say those we has XX, when So is scores, ratio. higher a loss would

percentage to the impact is deciles reduce those we the dramatic a deciles of loss we're have will that writing business overall so extent not new on the that and our extent higher business in to the And those can in ratio. that

what than rate So increases much will more dramatic have. the

taking and the confidence usage as we the have of and going our impact scores aggressive a more profitability predictive in So the actions the that will of a have lot result on do scoring expectation forward. solid we're model being of a

Robert Farnam

I I So math, an I mean, side, on had auto the XXX something like maybe year that. the of personal quick ratio or if think you do combined accident

giving increases predictive the rate do me in You're you modeling.

better say that year? it to even fair you're to So expecting or next better, come break combined to ratio or back is to that even

Jeff Miller

middle very not of the by combined be ratios next will XXX year. seeing We if we're under part disappointed

Kevin Burke

particular XX to run the projections, are that to We've have over of and with get run it actuaries breakeven on months, to we out point that of track some The year sort line Bob. business. of next sort

Operator

further presenters. no at the have time. call We this the turn I to questions back

Jeff Miller

of to want in results. few and months forward look with everyone. the to release again for call joining today, after third thank our you, the everyone a Thank we quarter you We speaking

Kevin Burke

Thank you.

Operator

This conference concludes call. today's

disconnect. You may now

Donegal (DGICA) 1 Aug 182018 Q2 Earnings call transcript